All companies do that. The trick is learning when they are doing that. IMO, it's in the 10-K and in market trends. Why can Northwest have 3 mid-west hubs and none of the other airlines can? Well, they can't and we know it. Yet, when NW bought/merged with Delta that's what they got, yet they said their will be no hub closures... until now apparently. Note, for investor workforce reductions and consolidations are generally good things for the stock price (maybe not the value). If you want to invest I would suggest you invest in value. IMO, this is what is meant by invest in what you know. If you invest in companies that value the same things you do you will be better able to spot the ones that are bringing more value at less cost. The other piece of the puzzle is knowing what value brings what cost. Should a company with $100M market cap have earnings equal to x times their shares? That's industry specific, and definitely something you should know.